Trueblue, Inc. · NYSE:TBI
Trueblue — Q1 2017 Earnings Presentation
14 slides from Trueblue's earnings presentation, May 1, 2017
Slide 1: www.TrueBlue.com
www.TrueBlue.com
Slide 2: Forward-Looking Statements
www.TrueBlue.com Forward-Looking Statements
Slide 3: Q1 2017 Summary
www.TrueBlue.com Q1 2017 Summary Revenue trends consistent with expectation Total revenue decline of -12% or -3% excluding Amazon1 o PeopleScout +1% o PeopleManagement +2% excluding Amazon o PeopleReady -7% Better than expected profitability Net income and Adjusted EBITDA2 exceeded high end of o
Slide 4: Financial Summary
www.TrueBlue.com Financial Summary Q1 2017 Amazon revenue and Adjusted EBITDA, $10M and $1M, respectively Q1 2016 Amazon revenue and Adjusted EBITDA, $68M and $5M, respectively Amounts in millions, except per share data Q1 2017 Y/Y Change Revenue $568 -12% -3% ex-Amazon Net Income $5 -33%1 Net I
Slide 5: Gross Margin and SG&A Bridges
www.TrueBlue.com Gross Margin and SG&A Bridges SG&A Amounts in millions Gross Margin 23.3% 24.5% 1.0% 0.2% Q1 2016 Staffing PeopleScout Q1 2017 $131 $122 $1 $8 Q1 2016 EBITDA Addbacks Core Business Q1 2017 1 1 Staffing includes our PeopleReady and PeopleManagement segments. 2 Primarily acquisition a
Slide 6: PeopleReady Segment
www.TrueBlue.com PeopleReady Segment PeopleReady revenue at low end of our expectation o Softer trends in manufacturing and service based businesses o Revenue negatively impacted by strong start on annual bill rate increases Strong start on annual bill rate increases – gross margin ahead of Q1 2
Slide 7: PeopleManagement Segment
www.TrueBlue.com PeopleManagement Segment Amounts in millions Q1 2017 Y/Y Change Revenue $192 -22% +2% ex-Amazon Adjusted EBITDA $6 -13% +200% ex-Amazon Adjusted EBITDA Margin 2.9% +30 bps +170 bps ex-Amazon Revenue up +2% excluding Amazon Largest portion of Amazon Revenue and EBITDA headwind is
Slide 8: PeopleScout Segment
www.TrueBlue.com PeopleScout Segment Revenue growth from new customers mostly offset by decline in same customer revenue Recruiting efficiencies driving Adjusted EBITDA margin expansion Amounts in millions Q1 2017 Y/Y Change Revenue $44 +1% Adjusted EBITDA $9 +8% Adjusted EBITDA Margin 19.7% +13
Slide 9: Lower Debt and Improved Liquidity
www.TrueBlue.com $216 $103 $54 $30 $35 $26 $246 $138 $80 2015 2016 Q1 2017 Net Debt Cash $77 $136 $140 $30 $35 $26 $107 $171 $166 2015 2016 Q1 2017 Borrowing Availability Cash Lower Debt and Improved Liquidity 31% 21% 13% 2015 2016 Q1 2017 Total Debt Liquidity Debt to Total Capital Amounts in millio
Slide 10: Executing Segment Strategies
www.TrueBlue.com Executing Segment Strategies PeopleReady systems conversion completed as planned JobStack poised to transform the business by increasing fill rates, boosting wallet share, increasing new business win rates, and attracting more workers 2017 is a year of deploying technology and
Slide 11: www.TrueBlue.com
www.TrueBlue.com
Slide 12: Q2 2017 Outlook
www.TrueBlue.com Q2 2017 Outlook Amounts in millions, except per share data Outlook Comments Revenue Growth Ranges Total Revenue PeopleReady PeopleManagement PeopleScout $600M to $615M -11% to -8% -9% to -7% -14% to -12% -10% to 0% • Total revenue decline was -12% in Q1-17 • Ex-Amazon growth of -6%
Slide 13: Appendix
www.TrueBlue.com
Slide 14: Non-GAAP Terms and Definitions
www.TrueBlue.com Non-GAAP Terms and Definitions EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization. Adjusted EBITDA further excludes from EBITDA costs related to acquisition and integration costs and Work Opportunity Tax Credit